Best Buy's Business Model

More

From our comments:

I have the Amazon app on my iphone and I've compared prices in the store many times. For books, you just have to put in the ISBN, and it's not that tough for most electronics.

Compared with Best Buy, Amazon saves TONS of money on anything small. Best Buy's business model seems to be competitive prices on TV's and computers, but then earning huge margins on Ethernet cables, HDMI cables, keyboards, converters, etc. There's also not much other choice for me for these items for brick-and-mortar, at least where I live.

Compared to books, Amazon doesn't save as much for newer titles if you get bestsellers. But they also save a ton of money on older titles

Which of course makes perfect sense.  A television is a considered purchase; people shop around.  Lots of people don't know to shop around for cables, and even those like me, who do, find ourselves running to a brick and mortar retailer because there's an emergency.  When the ethernet cable connecting my wireless to my cable modem has gone out, I don't really want to wait 48 hours for Amazon Prime to deliver (or even ship it overnight); I want my internet back up NOW.

Jump to comments
Presented by

Megan McArdle is a columnist at Bloomberg View and a former senior editor at The Atlantic. Her new book is The Up Side of Down.

Get Today's Top Stories in Your Inbox (preview)

An Eerie Tour of Chernobyl's Wasteland

"Do not touch the water. There is nothing more irradiated than the water itself."


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Is Technology Making Us Better Storytellers?

The minds behind House of Cards and The Moth weigh in.

Video

A Short Film That Skewers Hollywood

A studio executive concocts an animated blockbuster. Who cares about the story?

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Video

What Is a Sandwich?

We're overthinking sandwiches, so you don't have to.

Video

Let's Talk About Not Smoking

Why does smoking maintain its allure? James Hamblin seeks the wisdom of a cool person.

Writers

Up
Down

More in Business

Just In